June 4, 2008

Playstation News Brief

I have two Playstation-related stories for your Wednesday morning. First, Sony has stopped production on the games "Eight Days" and "The Getaway 3." The official statement is as follows:
"It has been agreed that production of both Eight Days and The Getaway will cease immediately due to the redistribution of resources and budget. This decision was made following an internal review of all games and it was deemed that with the incredibly strong list of exclusive first party titles coming up both this year and in the near future, resource should be reallocated to enhance those projects closer to completion." There is no word of whether the projects may be re-started at a later date.

Secondly, Sony has partnered with IGA for in-game advertisements on the Playstation 3. This comes a few months after Sony opened their own advertising platform for the system which allows companies like IGA and Google to sell ads in games. As for the state of in-game advertising, it is yet to be seen what the consumer thinks about ad placement in their games. There have been arguments stating that it ruins games, as well as arguments stating that it makes games fell more realistic depending on the type. Obviously in-game ads in a game such as Oblivion just don't fit, but when placed in games taking place in this time period it may bring realism if not overdone. Microsoft took similar steps last year when they purchased the ad agency Massive to work with advertising in their games. Hit the jump for the official press release from Sony.

FOSTER CITY, Calif. and LONDON, June 4 /PRNewswire/ — Sony Computer Entertainment America (SCEA) and Sony Computer Entertainment Europe (SCEE) today announced the introduction of dynamic in-game advertising on PLAYSTATION(R)3 (PS3). Marketers interested in placing advertisements in games for PS3 or publishers with available in-game space for advertisements are able to engage through advertisement distribution partners, with IGA Worldwide selected as PS3's first partner. This partnership will serve to bolster the already rapidly growing worldwide in-game advertising industry, which is expected to grow 1,150 percent to $971.3 million between 2006 and 2011 according to the Yankee Group.

"The PS3 platform is primed to leverage the high growth potential of the in-game advertising market," said Phil Rosenberg, Senior Vice President, SCEA. "Ads that are organic to the environment not only benefit developers and advertisers, but also create a richer experience for gamers."

"PLAYSTATION 3 is undoubtedly the prime opportunity for the in-game advertising industry," said Justin Townsend, CEO, IGA Worldwide. "Through this partnership with Sony Computer Entertainment, IGA can provide advertisers with a large and valuable global user base of 16-35 year old consumers with disposable income. With our standardized awareness-building advertising formats being delivered directly into people's living rooms while they play, there are great opportunities for advertisers looking to engage through an entertainment medium outside of the traditional TV spot."

PS3 provides advertisers with a direct avenue to reach the highly targeted, sought after gaming demographic, and has sold more than 12.5M units worldwide. DFC Intelligence forecasts that sales for the current generation of game systems will pass the 180 million mark by 2011, therefore, reiterating the potential for the in-game advertising market.

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